Pepsico reports higher revenue in 2017 thanks to chips and dip

The snack food and beverage giant reported a 1.2% increase in revenue for the full year, though growth was flat in the quarter that ended Dec. 30.

That three month period also posted a 50 cents loss in earnings per share as compared to a 97 cent increase during that period in 2016. The loss was due in part to a $2.5 billion tax expense in the wake of the U.S. Tax Cuts and Jobs Act.

In North America, sales of dips and chips led to Frito Lay reporting a 5% spike in growth, while Quaker Foods North America saw sales of hot cereals, cereal bars, and ready to eat mixes increase by the mid single digits.

“We met or exceeded most of the financial goals we set out at the beginning of the year,” Chairman and CEO Indra Nooyi. said in a statement. “We delivered these results in
the midst of a dynamic retail environment and rapidly shifting consumer landscape.”

In the previous quarter, Pepsico said it stumbled by focusing too much on its lower-calorie drinks to woo an increasingly health conscious public. The company said then that it would shift back toward promoting its brand staples like Pepsi and Mountain Dew, though it would continue expanding its menu.

While North American beverage sales were stronger in the last few months of 2017, Nooyi said in an earnings call with investors Tuesday that there was still “tremendous room to improve.”

Pepsico is creating a new ‘women-friendly’ Doritos chip that doesn’t have a loud crunch and isn’t messy. Veuer’s Sam Berman has the full story.

Narrated by Jimmy Fallon, this spot celebrates the history of Pepsi with past ad campaign stars, including Cindy Crawford, Britney Spears, and Jeff Gordon.

This year, the company will heavily promote new beverages such as Mountain Dew Ice, and its new sparking water, bubly. In the wake of the federal tax act, the company says it will increase training and offer a bonus of up to $1,000 to full time, front line employees. It will also return $7 billion to investors — a combination of share repurchases and an increase to the dividend.